28 March 2024
Duke Capital
Limited
("Duke
Capital", "Duke" or the "Company")
Trading and Operational
Update
Duke Capital Limited (AIM: DUKE), a
leading provider of hybrid capital solutions for SME business
owners in Europe and North America, is pleased to
provide the following trading update for its third quarter of the
financial year ending 31 December 2023 ("Q3 FY24"), and to provide
guidance on trading for its fourth quarter ending 31 March 2024
("Q4 FY24").
Q3
FY24 Trading Update
·
Recurring revenue for Q3 FY24 reached a record of
£6.3 million, an increase of 12% over Q3 FY23. Total cash revenue
was also £6.3 million.
·
Q3 FY24 represents over three continuous years of
increasing quarterly recurring cash revenue, with total growth of
350% from the £1.8 million
in the quarter ending September 2020 to £6.3
million for the last quarter ending December 2023.
Q4
FY24 Trading Guidance
·
Duke forecasts total cash revenue of £10.2 million
in Q4 FY24, a record quarter marking the first time Duke has
generated more than £10 million in a single quarter. This
represents a material 30% increase over the Company's previous
record of £7.8 million which was achieved in Q1 FY24.
·
During the quarter, Duke delivered two material
and profitable buyouts, that have returned over £19 million which
the Company will use for near-term deployments in new and existing
partners.
·
Duke expects to achieve recurring cash revenue of
£5.8 million in Q4 FY24, a small decrease versus the previous
quarter. While the recent buyouts have resulted in increased total
cash revenue, until this capital is redeployed, there is a
temporary impact of reduced recurring cash
revenue.
Overview of quarterly revenue growth:
|
|
Recurring Cash
Revenue*
|
Total Cash
Revenue**
|
|
Q3 FY23
|
£5.6
million
|
£5.6
million
|
|
Q4 FY23
|
£5.7
million
|
£5.8
million
|
|
Q1 FY24
|
£6.0
million
|
£7.8
million
|
|
Q2 FY24
|
£6.2
million
|
£6.2
million
|
|
Q3 FY24
|
£6.3
million
|
£6.3
million
|
* Recurring cash revenue excludes
exit premium receipts and cash gains from equity sales
** Total cash revenue is monthly
cash distributions from Duke's partners plus cash gains received
from the sales of equity assets and exit premiums
Operational Update
·
In February, Duke completed a £2.9 million
secondary share purchase from existing shareholders in United Glass
Group, increasing its equity stake from 30% to 74%, in line with
Duke Capital's vision to deepen its engagement with its high
performing partners.
·
In March, Duke delivered two highly profitable
exits from Fabrikat and Fairmed Healthcare, which has significantly
bolstered Duke's liquidity which currently stands at approximately
£44 million.
·
The Company has a strong pipeline of both new and
follow-on opportunities for capital partners to deploy additional
liquidity.
·
During the quarter, Duke also completed its change
of name and renewed messaging. The review has focused on ensuring
that Duke's unique offering is communicated to business owners and
stakeholders in a way which provides greater clarity and improves
comparison when evaluating a broad array of financing
options.
Neil Johnson, CEO of Duke Capital, said:
"We
are delighted to show a record quarter of total
cash revenue following the successful exits of two of our
investments. Fabrikat particularly highlighted the value of Duke's
capital, having financed an MBO by three executives in 2021,
facilitating an exit three years later at a 36% IRR. We look
forward to redeploying the capital from these exits into our
pipeline of immediate and longer-term opportunities, driving a
return in the short-term to delivering record quarterly recurring
cash revenues.
Following the completion of our name
change and corporate re-branding, Duke Capital is looking forward
to FY25 with renewed optimism. With a strengthened liquidity
position and strong pipeline, we are well-equipped to navigate the
challenges and opportunities that lie ahead, while remaining
cautious of the economic backdrop."
***ENDS***
For further information, please
visit https://dukecapital.com/
or contact:
|
Duke Capital Limited
|
Neil Johnson / Charles Cannon
Brookes / Hugo Evans
|
+44 (0)
1481 231 816
|
|
Cavendish Capital Markets Limited
(Nominated Adviser and Joint Broker)
|
Stephen Keys / Callum Davidson /
Michael Johnson
|
+44 (0)
207 220 0500
|
|
|
|
|
|
Canaccord Genuity Limited
(Joint Broker)
|
Adam James / Harry Rees
|
+44 (0)
207 523 8000
|
|
SEC Newgate (Financial
Communications)
|
Elisabeth Cowell / Alice Cho /
Matthew Elliott
|
+ +44 (0)
20 3757 6882 dukecapital@secnewgate.co.uk
|
About Duke Capital
Duke is a leading provider of hybrid
capital solutions for SME business owners in Europe and North
America, combining the best features of both equity and
debt.
Since 2017, Duke has provided unique
long-term financing which eliminates re-financing risk and
necessity for a short-term exit by providing a unique 'corporate
mortgage' while also aligning its returns to grow with the success
of the business.
Duke is focused on generating
attractive risk-adjusted returns for shareholders and has a track
record of achieving this across market cycles. It's three
investment pillars are capital preservation, attractive dividend
yield, and to provide upside upon exits.
Duke is listed on the AIM market
under the ticker DUKE and is headquartered in Guernsey.